The news: Despite audience preference for relevant advertisements, users across age groups maintain a generally negative sentiment toward ad personalization, per a Verve study—representing a unique challenge for advertisers.

• Three in four consumers were more likely to pay attention to ads that felt relevant to them (76%), while two in three stated that relevant and personalized ads helped them discover products they didn’t know existed.
• Nearly three-quarters (72%) of consumers said they would be less likely to pay to remove ads if they were targeted and interesting; meanwhile, nearly half of respondents said relevant ads were most appealing, and 48% said they were most likely to engage with these ads.

Yes, but: The study revealed a troubling paradox. Consumers across age groups were generally more likely to feel negatively toward personalization: 44% of respondents ages 16-24 felt negatively, while 37% felt positively; 40% ages 35-44 felt negatively compared with 39% who felt positively; 50% ages 45-54 felt negatively, while only 29% felt positively; and 58% ages 55+ felt negatively, compared with 22% who felt positively.

The only age group that didn’t follow this trend was consumers ages 25-34, but the gap wasn’t overwhelmingly large: 36% still felt negatively toward personalization, while 44% felt positively.

The personalization problem: Verve’s findings reflect a broader issue with ad personalization.

• Most US consumers still don’t fully understand what they’re consenting to when sharing data for personalized ads. Fewer than 1 in 10 US adults feel that they consistently know how platforms use their information or data, causing discomfort and skepticism.
• Consumers frequently find personalized ads invasive, regardless of what type of ad they’re seeing.

Yes, but: Personalization remains a critical advantage for advertisers, and personalized ads are more effective than generic ones. Personalized ads that align with consumer interests generate higher engagement rates, as users are more likely to pay attention to relevant ads rather than tune them out.

What marketers can do: Marketers must understand the factors that make consumers more receptive to personalized ads and adapt accordingly.

• Consumers across generations prefer personalized ads that offer the ability to opt out. Other factors increasing comfort include ad personalization that requires only minimal data collection; brands that offer clear privacy policies explaining how data is used; and ads that only use anonymized data.
• Quality matters over quantity. A smaller volume of relevant ads performs better than a high volume of generic ads when keeping in mind the factors that make consumers more receptive to personalization.